Researchers have found that people who are hungry tend to have greater craving for food that is more indulgent (i.e., high in sugar, fat, and salt). Consider that you are creating a line of convenience foods-either snack foods or frozen foods.
a. Describe the circumstances under which most people decide to eat convenience foods. What state are they likely to be in? Given this, what types of convenience foods are most likely to be eaten?
b. Consider now that most foods are purchased long before they are eaten, though most people only purchase items that they use. In what state are shoppers more likely to purchase convenience foods? Does this depend on whether convenience foods are healthy or indulgent?
c. Create a simple model of food choice based on simple projection bias. What food would a seller choose to sell to maximize profits, and how does this depend on α?
d. Describe your strategy for creating a line of convenience foods. Is there any way to create a successful line of healthy convenience foods?